Baby Bonus vs Paid Parental Leave: making the right choice

With the baby bonus payment decreasing from July 2013 onwards, I thought I'd explore the government payments available for parents with new babies. I hope I can empower any mothers, fathers or expecting parents to make the choices that will best benefit their finances and take advantage and maximise the government payments available.

The Baby Bonus changes will affect parents who have already had their first baby and are having a further baby due after 1 July 2013. The payment for subsequent babies will now be $3,000. It will remain at $3,000 until 1st July 2015, when it will be indexed with CPI.

There are a few eligibility tests to claiming the baby bonus. The main one that is worth noting is that the bonus is payable if the family's estimated taxable income is $75,000 or less in the six months AFTER your child is born or enters your care. Its important to note that the threshold is your taxable income. This means that its your assessable income (what your gross income is on the payslips) minus any tax deductions. If you're close to the threshold, its always great to be maximising all tax deductions legally possible. A quality Accountant should be able to assist with this.

Its also important to note here that families CANNOT claim both the Baby Bonus and the Parental Leave Pay. It is either one or the other, or in some cases, it might be neither.

The recent cuts to the Baby Bonus payment DO NOT affect the Parental Leave Pay. There are actually increases to the Parental Leave Pay in the form of Dad and Partner Pay from January 2013. I have blogged about this recently.

Parental Leave Pay is payments of up to 18 weeks of paid leave at the National Minimum Wage of $606.50 per week, which equates to $10,917 before tax (you will be taxed at your marginal tax rates). There are a few tests to satisfy eligibility for the Parental Leave Pay.

Importantly, the income test is that you have to have an individual adjusted taxable income of $150,000 or less in the financial year before the date of birth, adoption or claim (whichever is earlier). As stated already, its the taxable income that determines eligibility, so if your salary is on or near this amount, its definitely worth seeing an Accountant to make sure you are maximising all your possible tax deductions to decrease your taxable income. .

Another tip to helping your family swiftly claim any family government payments is that you generally need to have all your tax returns lodged and up to date. If you're due to welcome baby soon and you or your partner have a few years of tax returns outstanding, now's the time to get moving on these. Centrelink generally won't let you claim the Childcare Rebate or Benefits unless all your tax returns for both yourself and your partner have been lodged.

Finally, the following info sheet from the Australian Government can help you when choosing between the Baby Bonus and the Parental Leave Pay. It also contains info about the 'work test' - another extremely important test to qualify for the Parental Leave Pay. I encourage you to check it out.

Should I do my own tax? Helping you decide to DIY.

I get asked from time to time whether its worth going to see an Accountant to do your tax.

It seems that the number of people lodging their tax returns on etax is growing, but I'm a bit concerned that people aren't claiming as much as they could. Some people may be incorrectly lodging tax returns, which can lead to the stress of audits.

Lets look a bit closer at some of the issues to help you decide whether or not to do your own tax.

Firstly, if your situation is really straight forward and your employer pays for everything and anything you might need for work (lucky you!), then you might not need to see an Accountant. BUT, if you answer YES to any of the below, then there are lots of areas where the assistance of an Accountant will help you get the maximum refund.

* Did you use your motor vehicle to travel anywhere else other than to and from your normal workplace? This could include such travel as seeing suppliers, clients, offsite training and meetings. Even if you don't have a logbook, you may be able to still make a claim for this type of travel.

* Did you travel interstate for work? The ATO has reasonable daily travel allowances which allow you to claim certain amounts without receipts!

* Do you have to wear a uniform or protective clothing? You can actually claim your laundry expenses of 50 cents per wash or $1 per wash up to $150.

* Do you do work related study? If you do, there are a variety of expenses to claim, such as the cost of the fees, printing, laptop, internet, parking, travel... the list could go on...

* Did you spend over $300 on a work-related equipment? This could include a laptop, ipad, tools. These can all be claimed if you use them for work, but there are special rules in claiming them.

* Do you work from home, use the internet at home for work, use a mobile phone for work, use your laptop for work? If so, you could be able to claim on all of these within the ATO guidelines.

There are many other areas where an Accountant can be of assistance. These are some of the areas where I generally find value in helping out Tax File Number (TFN) workers in maximising their deductions. There are strict rules which apply for claiming the above types of work expenses, so if you answered yes to any of the questions it would be worthwhile seeing an Accountant.

If you are an investor of some sort, whether that be shares, property or other types of investments or have business interests, than I highly encourage you to see Accountant to make sure you are maximising the claims and also lodging them correctly!

I would also recommend going with an Accountant that has been recommended by someone else and that is affordable - or an Accountant who actively blogs so you know they know their 'stuff' :)

I offer a fixed fee for my tax returns, with a standard individual tax return costing $99 (which is tax deductible on your next tax return). I'm certainly confident that all my clients are more than $99 better off after lodging their tax return through myself than if they were to have done their tax themselves.

If you do think you can manage doing it yourself, than I would highly recommend using the pre-fill option of etax rather than lodging by paper. Also, if you are lodging your own tax return you have until the 31st October 2012! If you use an Accountant, you generally get until the 31st March 2013 (but you need to contact them before the 31st October 2012 to get the extension)!!

Are your contractors really employees? A summary of the ATO guidelines recently released

The Australian Tax Office (ATO) recently released information helping businesses to determine if workers are employees or contractors. The ATO is cracking down on businesses using contractors to try 'to illegally lower their labour costs by avoiding their pay as you go (PAYG) withholding and super obligations for the worker'.

Penalties, interest and charges may apply for employers if the ATO finds that workers are engaged as contractors when they are really employees. The ATO also suggests "dobbing in" other businesses that may be treating employees as contractors.


Examining the working arrangement is key. Just because the worker has an ABN or business name, its the industry 'norm', is only needed for short-term or irregular work, have specialist qualifications or skills DOES NOT mean that the worker is actually a contractor, according to the ATO.
The ATO sets out typical aspects of a contractor working arrangement to include:

• they run their own business and provides services to your business,
• they can sub-contract/delegate or pay someone else to do their work,
• they are paid for a result achieved based on the quote provided,
• they provide all or most of the equipment, tools and other assets required to complete the work and they do not receive an allowance
• they take on commercial risks and are legally responsible for their work and liable for the cost of rectifying and defect in their work,
• the have freedom in the way the work is done subject to specific terms in any contract or agreement,
• the worker is operating their own business independently to your business and they are free to take on additional work.

If the worker is a contractor, the business also won't have Fringe Benefits Tax (FBT) obligations. Additionally, they may avoid other obligations such as occupational health and safety requirements, payroll tax, wages, conditions and leave entitlements.

Typical aspects of an employee working arrangement include:

• they work in your business and are a part of your business,
• they cannot sub-contract/delegate or pay someone else to do the work,
• they are paid for the time worked, price per item of activity or a commission,
• your business provides an allowance or their equipment, tools and other assets required to complete the work,
• they take no commercial risks and your business is legally responsible for the work performed by the worker and liable for the cost of rectifying any defect in the work,
• they are subject to control over their work and your business has the right to direct the way in which the worker performs,
• they are not operating independently from your business.

Below is a link to an ATO decision tool to help you determine whether your workers should be classified as employees or contractors.

http://www.ato.gov.au/content/00095062.htm?alias=employeecontractor

If you are after more specific advice, I recommend getting in touch with an accountant who understands these issues and is willing to discuss them with you.

A case study of 2 small business owners: which one are you?

Most entrepreneurs go into small business with dreams of a better life for themselves and their families, but the reality can often be far from this. Below I examine two real small family businesses with turnovers less than $1 million. Which one are you more like?

Mr and Mrs Burnt-out

They are a husband and wife team. They offer a fantastic product and service. They work 14 hour days, 7 days a week. They can't remember the last time they took a holiday. You can see the tiredness in their eyes. They do everything themselves in the business. They do the front-end, the marketing, the administration and the delivery of the product and service. The business revolves around them. They also do all the book work. They struggle to invoice out on time. They don't follow up debtors. Because they are running around doing everything and anything, their service standards and core business product is not as good as it used to be. Some of their loyal customers are becoming disillusioned. They are surviving week by week. They are burnt out from working in their business all the time, there is tension between the couple and one of them is having health problems.

Mr and Mrs Balanced

Another husband and wife team. They also offer a fantastic product and service. They work hard, but only work on weekends when necessary. The wife works part-time in the business. They recently went away to the snow for a week-long holiday. They are also going away to Europe next month for business and a holiday. Their business runs smoothly when they go away. They have clear systems in place. They do not do all the work themselves. They have key employees and also contract out the work that they are not good at, and choose to focus on the areas within the business that they excel at. Although cash flow is still tight, they are growing and know exactly where the business is at. They have an appropriate debtor management system in place. The quality of the product and service has remained consistent and they are attracting new clients and retaining existing clients. They have a business plan and budget which they monitor and review. The owners are now focused on working more on their business rather than in the business.

Do either of these scenarios sound like yours?

I don't want you to be too down on yourself if your business is more like Mr and Mrs Burn-outs. You're certainly not alone. There are many businesses that operate like this. Owners may feel like they have to do everything for a variety of reasons: there's not enough money to employ someone, no-one else can do the work as good as them, they want to keep control of everything... the list could go on.

But when you're working 7 days a week, at what cost does this come to you and your family? Your health, your time and your wellbeing? Is this really what you wanted when you first went into business?

I know from experience that my bookkeeping and accounting services have been worth every cent to businesses like Mr and Mrs Balanced. I like to think I'm helping them not just in dollar terms, but with their emotional wellbeing too - providing them with piece of mind that someone competent is assisting with an integral part of their business.

Smart business owners realise that their business is much more productive when they focus on their areas of strength, and they get others involved to provide assistance in areas of weakness. This then in turn produces far greater growth and success for their business and enables them to live a fulfilling life outside of their business.

Paid Parental Leave just for Dads - starting 2013!

Most people know about the Australian Government's 18 weeks paid parental leave scheme, but did you know that fathers and same sex partners can take two weeks pay at the minimum wage for babies born after 1 January 2013?

'Dad and Partner Pay' can be taken from 3 months before the birth or adoption of your child, and up to 12 months afterwards. It can be taken in addition to the mother taking 18 weeks paid parental leave.

I read this with glee when I first found out. I'm due with my third child in early January and I'll definitely need all the help I can get.

Whilst the 2 weeks parental pay is at minimum wage, it's definitely encouraging to see that the government is supportive in enabling fathers to be able to bond with their newborn (and give the new mother a break too)! The Family Assistance Office is in charge of administering this once-off payment, with the minimum weekly wage currently set at $606 per week before tax.

As expected, there are some conditions attached for the father to receive the 2 weeks paid parental leave. Eligibility includes full-time, part-time, casual, contract, seasonal and self-employed workers, as long as they are on unpaid leave and do not work during the two week period (excluding housework of course!). The father must have earned less than $150,000 in the previous financial year and have worked more than one day in a week in ten of the thirteen months before the birth or adoption of the child or at least 330 hours.

Having a child can put financial pressure on household budgets, so its definitely a good idea to plan and be prepared and know about all the entitlements you can access. If you run your own business or can control your wage to some extent, make sure you are aware of the thresholds that entitlements cut off at, and consider structuring finances in such a way to maximise entitlements, if at all possible.

So it looks like I won't be eating spicy curries, drinking castor oil or raspberry leaf tea, or partaking in any other midwives tales about bringing on birth. At least not until after the 31st December, to make sure my husband gets the 2 weeks parental leave!

Who are you getting your tax advice from?

The other day at kindy pick-up, I overheard a small business owner getting some backyard tax advice from someone who didn't know what they were talking about.

This person didn't want to ask their Accountant for advice. They were complaining that the Accountant was too expensive, particularly as they were getting billed in 10 minute increments, for every small email or 1 minute phone call question.

If you want to learn more about your own small business tax issues, the Australian Taxation Office (ATO) recently released a series of FREE tax webinars that you may find interesting. The webinars are great for people who are starting a new business, are thinking about starting a new business, or for those who just want to update their knowledge.

Webinar topics include income tax deductions, home-based business, motor-vehicle deductions, concessions for small business, activity statement essentials, goods and services tax, budgeting and record-keeping, small business assistance, employer obligations and issues for contractors.

Here's a link to the ATO's webinars: ato.gov.au/busreg

I always recommend that you seek an Accountant for tax advice. Getting advice from someone who doesn't know what they are talking about could cost you a lot more than an Accounting Fee.

If you're Accounting Fees are stacking up, it might be a good idea to look at your payment structure.

When starting my own accounting practice, I wanted to overcome the common issue of clients complaining about their fees. I knew from personal experience how quickly the bills can rack up when dealing with professional advisers.

I've found that offering a Fixed Fee Accounting Service encourages communication and strengthens my relationship with my clients - they're not busy worrying about how much each phone call, email, or meeting is costing them.

I like to think this gives my clients peace of mind - they're getting affordable advice (that's financially manageable) from a professional, not the neighbour's/uncle's/dad's budgie!


Miriam Clappis is a CPA and has completed a Bachelor of Laws (Honours), Bachelor of Commerce (Corporate Finance) and a Bachelor of Economics from The University of Adelaide. Miriam is due to complete a Masters of Taxation  in 2013 at Curtin University and has commenced a Masters of Laws at The University of Adelaide.

Follow Miriam (aka @theNumbers_Lady) on Twitter.

New Company Director Penalty Regime: must read for all directors and aspiring directors!!

Directors are now in the firing line. Changes have been recently made to the tax law to reduce the scope for companies to engage in fraudulent phoenix activity or to escape liabilities and payment of employee entitlements.

*'Phoenix activity' refers to a new company which has emerged from the collapse of another, but is set up to appear to customers as though it's "business as usual", trading in similar activities as the collapsed company. 

Directors are now personally liable for their company's PAYG obligations if they are not paid by the due date and any outstanding superannuation guarantee debts. For new directors, liability occurs 30 days after the directors appointment.

So what could this mean for you?

If you are an aspiring director - this is definitely more of a reason to do your due diligence and make sure the company is paying its PAYG and superannuation guarantee on time.

I often come across small businesses where the husband and wife are both co-directors. I rarely advise this type of business set-up. I am a strong advocate of having a risk and non-risk person in a family business.

If your business is constantly struggling to meet your PAYG and superannuation obligations than I recommend going back to basics - implementing a budget and business plan, putting in place an effective marketing strategy, carefully monitoring expenses and an efficient administration to be invoicing and collecting debtor payments swiftly. I am able to assist in all these areas at affordable prices.

If you feel you may need to review your exposure to any risks associated with being a director, feel free to contact me via email or on Twitter.

7 Tips on making the most of your Tax Refund!

Its not everyday that we get money from the Tax Office. Before you hit the shops, have a read through the tips below to see if you are getting the most out of your tax refund.

1. Pay off credit cards - Yes, this seems a bit boring, but if you have got credit card debt, its likely too be incurring excessive amounts of interest which would be costing you lots of money. It's also a great feeling to be able to get the debt down a considerable amount in one hit.

2. On the subject of debt - use the money to pay off your home loan. You'd be surprised at how much any additional payments off your home loan can save you interest and shorten the loan term in the long run!

3. Don't have a home? Well then consider putting it towards that house deposit if you're saving up for one.

4. Establish a "sleep well at night" savings account. If you have no credit card debt and your mortgage is under control, consider having a sleep well at night savings account. This type of account is great to have as a back-up in case of an unexpected large bill or a drop in income to help you get by in the short term.

5. Balance - without wanting my tips to sound "un-exciting", if you do feel the need to reward yourself with a little retail, consider balance. Can you allocate 50% of the refund to any of the above areas? Anything is better than nothing....

6. If you do want to allocate it to your mortgage or savings account, consider having the refund paid directly into that bank account, rather than your everyday account. It will be much less tempting to spend if you can't immediately access it for the shopping spree.

7. Not getting a tax refund? There could be a variety of reasons why you're not getting any money back from the ATO. I definitely encourage anyone who is concerned about this, to make sure you are going to a good (and affordable) accountant to help you navigate this area and claim all expenses you are entitled too.

Want to correctly claim as many work-related expenses as possible?

Make sure you are claiming all work-related expenses you are entitled too by reading up on the ATO's occupation specific guides. If this means mumbo jumbo to you than definitely use a Tax Agent who can help you identify and maximise the expenses you can claim.


The ATO has developed three new occupation specific guides to help taxpayers correctly claim their work-related expenses. Below are the links for employee plumbers, IT professionals and Australian Defence Force members. Feel free to share this with a family member or friend that may fall into one of these professions .

• Plumber employees - claiming work-related expenses
• IT professionals - claiming work-related expenses
• Australian Defence Force members - claiming work-related expenses. 

If you have a different occupation to the above three, but are still interested in what expenses you can claim than refer to Industries and occupations.  You might find your occupation or a similar one to give you some guidance on work-related expenses you can claim.

Top 10 last minute tax planning tips to save you cash

It's not ideal to think about tax planning with less than 2 weeks until the End of Financial Year (30 June 2012), but my motto is "better late then never".

I've briefly summarised my top 10 last minute tax planning tips for the everyday worker. If you have any questions about any area or its application to your situation please feel free to contact me.

1. Donations - consider making any donations to registered charities before 30 June 2012.

2. Prepay private health insurance - from 1 July 2012, the 30% rebate will only apply for singles earning up to $84,000 and couples earning up to $168,000. A reduced rebate will apply for those earning between $84,000-$130,000 for singles, and between $168,000-$260,000 for couples. Those above these rates, don't get any rebate. If you fit into the category of no rebate or reduced rebate, you should consider prepaying your private health insurance before 1 July 2012 to continue the full 30% rebate (you can prepay up to 30 months in advance).

3. Quantity surveyor's report for investment property - You could be missing out on thousands of dollars of investment deductions (such as depreciation on plant, fixtures and buildings) if you haven't obtained one of these for your new or existing investment property. Order one before 30 June 2012 and you can also claim the cost of the report.

4. Work clothes and uniforms - if your corporate uniform needs replacing, your work overalls have seen a better day or your steel-cap boots are falling apart, consider purchasing these deductible expenses before 30 June 2012.

5. Bring forward medical expenses - if you've spent close to or more than $2,060 on out of pocket medical expenses, than consider purchasing any more prescriptions/pharmaceuticals/medical services before 30 June 2012. This will allow you to maximise the tax offset of 20% in excess of $2,060. The medical expenses offset will be means tested from 1 July 2012 and those with income above $84,000 (single) and $168,000 (couple) will only get 10% on out-of-pocket medical expenses in excess of $5,000.

6. Appoint a tax agent - Those that don't use a tax agent will have until the 31 October 2012 to lodge their 2012 tax return. Those who appoint a tax agent before the 31 October 2012 get an extension until March 2013 to lodge their 2012 tax return and don't incur any late fees.

7. Government Super Co-Contribution - if your income is less than $31,920 for the Financial Year, you'll receive a $1 for $1 benefit up to $1000, for any after-tax contribution you make into your super before the 30 June 2012. This means if you contribute $1,000 to your superannuation, the government will also contribute $1,000 to your superannuation. If your income is between $31,921 and $61,920 the government will still contribute a proportion of your after-tax super contribution. Below is a link to work out how much the government would contribute or alternatively, send me a private message if you are interested in maximising the benefit of a super co-contribution. Unfortunately, from 1 July 2012, the co-contribution is decreasing to a maximum $500 contribution for those only on incomes less than $46,920.

http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=superc_calc.xr4&go=ok

8. Tax Offset for contributing to spouse's superannuation - if your spouse's income is less than $10,800, then you could qualify for a maximum tax offset of $540 if you make an after-tax contribution of up to $3,000 before the 30 June 2012. For those whose spouse's income is up to $13,800, you will be still be eligible for an off-set.

9. Keep a four week diary of home-office use - if you are having to bring home work from the office regularly, keep a diary for four weeks detailing the hours spent working in you home-office and you will be entitled to claim 34 cents for every hour. Whilst, it's not the hugest tax deduction, every cent counts and it can make working outside of work hours that slightly more tolerating!

10. Purchase any work-related expenses on your debit or credit card - I recommend this to all my clients, as in the unfortunate event that you lose a receipt come tax time, it's still possible to substantiate the work expense with the credit card or bank statement.


Follow @TheNumbers_Lady on twitter.

What business structure is right for you?

I often get people telling me they want to start a business. This is an exciting time for any budding entrepreneur. I know all too well how tempting it is to just jump in and run, but it’s important that you give serious attention to the way you structure your business as well.

There are several different ways to set up your business structure, with a variety of tax and legal issues to consider.

I’ve decided I’m going to cover each structure in its own separate blog, in order to give each one the attention it deserves (and also not to bore you – I know that people don’t find business structures as exciting as I do!).

So let’s look at the ‘Sole Trader’ structure.

Sole Trader

A sole trader is essentially an individual with an Australian Business Number (ABN). There are a number of reasons why you may choose to start up as a sole trader. You may be only branching into the business world on a part-time basis, while you study or work another job. You could simply be looking for the quickest and easiest way to get started, avoiding the ‘red tape’ that comes from establishing a company structure.

Like anything, there are both advantages and disadvantages to taking this path. Here are some of the more significant ones to think about:

Advantages:

·       There are cheaper start-up establishment costs.

·       You have complete control of the business – you don’t have to worry about shareholders or director’s duties.

·       The financial reporting is less complicated, which also means lower accounting fees.

·       You are taxed at an individual tax rate – this means that if your profit from the business is less than $37,000 you will be taxed at a lower rate than the flat company tax rate of 30% on any profit.

·       You don’t have superannuation, workcover or payroll obligations (although I strongly recommend still contributing to your superannuation – it’s a business tax deduction and you don’t want to end up with no money in your super at say, 60 years of age).

·       In limited circumstances, you can offset your business losses against other income (such as employee income) or carry forward any business losses to offset future profits.

Disadvantages:

·       Because YOU are the business, you’re also personally liable for any debts of the business. You need to seriously consider all the risks involved, and factor in the value of your personal assets, such as the family house, and whether you would be prepared to lose those assets if something went wrong.

·       While not paying workcover might save you money, it also means that if you have an accident, you will not be able to access the benefits associated with it. It’s definitely worthwhile to consider taking out a sickness and accident insurance cover.

·       If your business starts going really well, your profits are still taxed at individual tax rates. This means that if you make $180,000 in profit, you’ll get taxed at 45% for any additional profit instead of a flat company tax rate of 30%.

So these are some things to consider before deciding to become a sole trader. Individuals will always have specific needs and it’s important that you always seek professional advice before setting up your business.

In my next blog, I’ll begin to explore the issues to consider when setting up a Pty Ltd company structure.

Got a question? Ask @thenumbers_lady on Twitter.

Can a bank account help you sleep?

Entrepreneurs dream of going into business because of the lifestyle it can afford them. But many often get trapped in the negative side of entrepreneurship without breaking through to the positive aspects. This is backed up by the alarming stat that approximately 50% of businesses don't make it past their fifth trading birthday.

Have you ever spent the night worrying about how to pay all the bills that keep piling up? Have you ever avoided returning phone calls from creditors because you don't have the money and are not sure when its coming in? Even if you haven't been in this situation, I've discovered a secret that one of the most successful business owners in the world has used to eliminate the worry.

While I believe there is no single magic wand solution to business cashflow issues, one great way to minimise stress could be to start up a "sleep well at night" bank account.

It's a concept that is certainly good enough for Warren Buffet. The world-leading business owner is a strong advocate of such a business account. He maintains his own "sleep well at night" bank account of approximately $20 billion dollars (this is what helped him sieze opportunities during the GFC, when most other companies had huge debt reserves instead of cash reserves). Okay, so this numbers a bit out of reach for the struggling small business owner. But to put this in some perspective, $20 billion is equivalent to two months revenue for Warren Buffet.

And I think two months revenue is a realistic goal for business owners to set aside in their "sleep well at night" bank account. Like anything, short-term targets can make it work. Over the next 6 months, you could aim to put one months revenue set aside. If that seems like a bridge too far, aim for two weeks revenue. A key way to do this could be to immediately transfer out a small percent of revenue each time it comes in. A business budget is also a must have to ensure the success of implementing a "sleep well at night" bank account.

One strategy that I've used for a client in the past involved setting up a high interest, no bank fee account with a separate smaller bank (smaller banks and credit unions can often give you better interest, but shop around) that wasn't automatically linked with their normal trading account. This made the money in that account that little bit harder to get back into the "black-hole" of the business cheque account. So its similar to a term deposit, but with funds that you can access if you need too.

This "sleep well at night" account strategy is great for a small business with relatively low debt levels. If you have high debt levels, than you may need to adopt a different strategy focusing more on debt reduction to sleep well at night. If you don't have any spare cash to think about a "sleep well at night" account, than you may need a complete business overhaul to get back to achieving the reasons why you wanted to go into business. I intend to touch on some of these issues in future blogs.

Super payments burning a hole in your budget? You're not alone.

If you're a business owner and you manage staff, there's a strong chance your employees are entitled to receive super.

As a result, last weekend's deadline (28th April) for employer super payments may have left you with an unwanted dent in your budget. If this is the case, there are some simple budgeting measures you can put in place to manage these rather large quarterely lump sums.

Setting aside a separate savings bank account to transfer the additional 9% of wages into is easy and will reduce the panic of super payments every quarter. It's as simple as setting up a direct debit so you don't even have to think about it.

You could also look at paying the super monthly to the superfund which could help you better manage the obligation.

There are great benefits to meeting your super obligations on time, and equally great penalties if you miss out.

Most significantly, missing the deadline means your super payments are no longer tax deductible. Even if you pay the right amount of superannuation, but it is a few days late, the ATO rules state that you cannot claim the superannuation deduction. It's a hefty penalty, so it's wise to plan your cashflow in advance.

If you missed the deadline, don't fear - now's the perfect time to organise your budget so that you can make every super payment on time in future. FYI the next deadline is July 28.

The ATO's reference guide for paying super is a handy tool for understanding your superannuation obligations: http://www.ato.gov.au/content/downloads/SPR00147045PayingSuperRef.pdf